Investing some of your superannuation savings into ASX dividend shares is a popular and proven way to earn lifestyle-boosting passive income during your retirement years.
But if your aim is to invest $400,000 of your superannuation into ASX shares, then how much passive income might you reasonably expect to earn from that super investment each year?
We'll have a look at three quality S&P/ASX 200 Index (ASX: XJO) dividend stocks below to get a handle on that answer.
But first, some important reminders.
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Dividend traps, diversity and trailing yields
How much passive income you can earn from your $400,000 superannuation investment will depend on the yield you receive, with the idea being you don't draw down your initial capital investment.
Now, it's tempting to chase the top yielding stocks. But beware you don't fall into the dividend trap. A lot of the top yielding ASX stocks you'll see listed have also suffered large share price falls. This could signal further troubles ahead as well as lower future dividend payouts.
Also, bear in mind that while we'll look at three ASX dividend shares below, a properly diversified passive income portfolio will contain a lot more than just three ASX stocks. There's no magic number, but 15 is a decent target. Ideally, these companies will operate in various sectors and locations. This will reduce the risk of a material decline in your passive income if any single company or sector takes a hit.
And finally, remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.
With that said…
Investing $400,000 of superannuation in ASX passive income shares
The first ASX 200 dividend stock I'd consider investing some of my $400,000 of superannuation savings into is Aussie fuel supplier Ampol Ltd (ASX: ALD).
Recently trading for $42.04 each, Ampol shares have gained 40.3% in 12 months. So, no dividend trap here.
As for that passive income, Ampol paid (or will shortly pay) two fully franked dividends over the last year, totalling $2.45 a share. That sees Ampol shares trading on a fully franked trailing dividend yield of 5.8%.
Next, I'd invest some of my super into Australian fitout and construction services specialist Shape Australia Corporation Ltd (ASX: SHA).
Recently trading for $6.99 a share, Shape stock has gained 43.7% in 12 months.
Shape also paid (or shortly will pay) two fully franked dividends over the year, totalling 32 cents a share. This sees Shape trading on a fully franked dividend yield of 4.8%.
And the third ASX dividend share I'd target is big four Aussie bank stock ANZ Group Holdings Ltd (ASX: ANZ).
Recently trading for $37.47, the ANZ share price is up 13.6% in 12 months.
Over this time, ANZ paid two partly franked dividends totalling $1.66 per share. ANZ trades on a partly franked trailing dividend yield of 4.4%.
To the maths!
If you were to invest an equal amount of your $400,000 superannuation allotment to each of the above ASX 200 dividend stocks, you could expect to earn a yield of 5.0%.
Atop potential future share price gains, you could then expect to earn an extra $20,000 a year in passive income from that super investment.
